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U.S. issues new tariff threat, this time against British-built cars

WASHINGTON — Britain is the United States' closest ally but their long friendship may be sorely tested as the two countries try to forge a new trade agreement after Britain's exit from the European Union. U.S. Treasury Secretary Steven Mnuchin said on Saturday in London that he was optimistic that a bilateral deal with Britain could be reached as soon as this year. But Mnuchin gave up no ground after a second meeting with his UK counterpart, Sajid Javid. Javid has insisted that Britain will proceed with a unilateral digital services tax, despite a U.S. threat to levy retaliatory tariffs on British-made autos. Mnuchin told reporters after Saturday's meeting that such taxes would discriminate against big U.S. tech companies like Alphabet Inc's Google, Apple, Facebook and Amazon. The UK Treasury declined to comment on the private meeting. The divide highlights the challenges ahead as the Trump administration seeks a new bilateral agreement with Britain, part of a broader push to rebalance relations with nearly all its major trading partners. The stakes are high — British Prime Minister Boris Johnson has pegged the trade deal with United States as a way to ease the pain of breaking with Europe, Britain's largest trade partner. U.S. President Donald Trump, has promised a "massive" trade deal to support Brexit, the product of a populist movement similar to his "America First" agenda. The goodwill and special relationship the two countries have enjoyed for decades may not count for much, experts say. "Trump is not going to be doing Johnson any favors," said Amanda Sloat, a senior fellow with the Brookings Institution in Washington. "He's not going to give him a trade deal without major concessions." Even before the digital tax issue arose, the Trump administration threatened to tax foreign car imports, which could hit British-made Jaguar, Land Rover, Mini, and Honda Civic hatchback cars. Stiff U.S. trade demands include increased access for U.S. farm goods, concessions that will be difficult for Britain's entrenched natural food culture to swallow. The United States also wants Britain to change the way its National Health Service prices drugs and allow in more U.S. pharmaceuticals, which could prove politically unpopular for Johnson's government. Washington's demand that London block Chinese telecoms equipment maker Huawei Technologies Co Ltd for national security reasons could also cloud talks.

2018 Jaguar E-Pace launches with a barrel roll

After months of testing – some of which we caught in spy photos – and a little teasing, Jaguar has officially entered the compact crossover space with the launch of the 2018 E-Pace. And it was a fairly grand entry, too. Instead of the usual move of driving the car onto the stage or pulling off the sheet, Jaguar did a barrel roll in the E-Pace to hail its coming. Yes, Jaguar did a 270-degree corkscrew jump with the E-Pace, launching it 50 feet through the air to earn it a Guinness World Record for the "Furthest Barrel Roll in a Production Vehicle." It's similar to the stunt the automaker pulled for the launch of the F-Pace, which entered the world with a record-setting loop. The Jaguar E-Pace is smaller than the F-Pace, and seats five. It's available with a pair of 2.0-liter turbocharged inline-four gasoline engines mated to a nine-speed automatic transmission. The base motor makes 246 horsepower and 269 pound-feet of torque, and puts that power to the ground via a standard all-wheel-drive system. The R-Dynamic version ups the output figures to 296 horsepower and 295 pound-feet, comes with a pair of paddle shifters, and gets the Active Driveline AWD system. Both drivelines can transfer almost all the torque to either the front or rear axles, depending on the driving situation, but the Advanced Driveline can disengage AWD, sending power to just the front axle to save fuel, and does more to keep the car stable in dynamic driving. The E-Pace also offers an optional Configurable Dynamics package that allows the driver to select Normal or Dynamic modes, which affect throttle, transmission, and steering response. The optional Adaptive Dynamics system provides variable suspension damping based on the driving mode. Drivers can select driving modes through the E-Pace's JaguarDrive control, choosing from Normal, Dynamic, Eco, as well as a Rain, Ice and Snow mode for low-grip conditions. Inside the car, the E-Pace is equipped with a 10-inch touchscreen infotainment system that has a customizable home screen. Two premium Meridian audio systems and a head-up display are available. All models have a feature that allows the owner to check on the vehicle remotely. The E-Pace also offers 4G Wi-Fi, and a connected navigation system that offers real time traffic and parking information. The E-Pace starts at $39,595. The R-Dynamic version begins at $48,245. Jaguar will also offer a limited E-Pace First Edition at a price of $54,545.

Here's today's round of auto plant closures in response to coronavirus

More automakers have shuttered factories, as businesses everywhere work to slow the spread of the Covid-19 coronavirus — and as the pandemic slows sales and disrupts parts supply chains. On Friday, the following closures were announced: • Volvo will close its factories in Sweden and the United States from March 26 to April 14. Volvo's U.S. facility, in Charleston, South Carolina, makes the S60 sedan. Its assembly plant in Torslanda, Sweden, turns out the XC90, SC60, and V90. Other Swedish facilities make engines and component parts. A Volvo factory in Ghent, Belgium, that builds the XC40 and V60 closed earlier this week and is expected to remain offline until April 6. Volvo's four factories in China have been reopened after a shutdown earlier this year. • Jaguar Land Rover announced that it will suspend production at its assembly plants in the UK over the coming week. The shutdown is expected to last until April 20. Elsewhere, production continues at the company's factories in India and Brazil, and JLR's joint-venture plant in China reopened at the end of February. • Bentley is closing its factory in Crewe, England, for four weeks, effective today. • Bugatti has put its atelier in Molsheim, France, on hiatus. No date was given for when assembly of its supercars might resume. • Mercedes-Benz on Monday will shut down its SUV factory in Alabama and its van assembly plant in South Carolina. Both will remain closed for a minimum of two weeks. Tesla yesterday revealed that it will suspend operations at its Fremont, California, vehicle assembly plant next week, on order from local officials there. Yesterday's factory closure announcements also included the U.S. assembly plants for Toyota (until April 6), Volkswagen (through March 29), Subaru (through March 29), and Hyundai (no time period specified). They join GM, Ford, Chrysler, Honda, Nissan, and Harley-Davidson, which earlier this week announced the suspension of production at their facilities. Plants/Manufacturing Bentley Bugatti Jaguar Land Rover Mercedes-Benz Volvo coronavirus